Russia: Wheat profitability pushes Rostov region farmers to experiment, growth in niche crop sowing observed in the south

Published 2024년 9월 8일

Tridge summary

The profitability of wheat production in Russia's Rostov Region has turned negative due to government export duties, leading farmers to convert some land to niche crops. Despite increased expenses and a decrease in wheat profitability for three years running, there is no shift away from wheat in the Krasnodar Region. The Rostov Region has seen a 22% increase in winter rapeseed sowing and a 12% rise in soybean sowing for 2024. However, Alexander Gavrilenko emphasizes that wheat remains the most predictable and stable crop and is the most liquid, despite low prices. The future of wheat production profitability is largely dependent on government regulation.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The profitability of wheat production in the Rostov Region has fallen to negative values due to government regulations (export duties). This was reported to Vedomosti Yug by Arkady Zlochevsky, President of the Russian Grain Union. According to him, farmers are already converting some of their land to niche crops. According to experts, grain purchase prices have remained at approximately the same level for many years, while expenses have doubled or more in the last year alone for some items. Farmers have begun to experiment. According to Zlochevsky, the profitability of wheat in the Rostov Region and a number of other regions has been falling for the third year in a row. As a result, the sowing area is increasingly being redistributed to niche crops (rapeseed, soybeans, peas, mustard) and oilseeds (primarily sunflower). "As a rule, the land that was under wheat is divided into pieces and sown with several crops," says Zlochevsky. He adds that there are no problems with the ...
Source: Zol

Would you like more in-depth insights?

Gain access to detailed market analysis tailored to your business needs.
By clicking “Accept Cookies,” I agree to provide cookies for statistical and personalized preference purposes. To learn more about our cookies, please read our Privacy Policy.